Will they weather the storm?
The weather derivatives market saw record volumes in 2006, but these declined sharply into 2007. Evan Koster, David Cohn and Nicholas Rock of Dewey & LeBoeuf look at where the weather market, now 10 years old, may go next
The weather derivatives industry really came of age in 2006, with volumes hitting record levels. Contracts traded on the Chicago Mercantile Exchange (CME) were up over 300% from 2005. With debate raging on climate change and extreme weather events causing immediate problems for many businesses, companies were keen to explore new ways of managing their weather risk.
However, despite the climate
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Markets
Dealers call on China regulator to approve Isda Simm
Isda is asking NFRA to approve SIMM as “an industry model”
Tech firms continue surge in FX hedging
Apple and Micron lift FX notionals by more than 60% in Q3, while Alphabet and others deploy debt for net investment hedges
What Goldman’s commodities head learned from Iran war
Talking Heads 2026: As prices jumped, market hedges faltered and physical delivery became all important
Future of settlement is taking shape – so are some big questions
Cash or coins? How to tackle loss of netting? What about CBDCs? Market has a lot to decide in settlement revamp
Dispersion trades weather AI selloff, for now
Gamma-weighted versions of the popular trade gained almost 7% as single-stock volatility surged
BofA names co-heads for new credit macro trading unit
Reshuffle comes after macro and systematic trading head Derek Hafer jumped to RBC
‘Think like a farmer’: how Transtrend rode out the Hormuz shock
Talking Heads 2026: Transtrend’s Toni Budimir on shifting correlations, staying diversified – and knowing when to stop calculating
BRL options traders count cost of Lula shock
One-way Bolsonaro bets forced dealers into tough hedging choices as USD/BRL gapped 13% on Lula’s victory
